Original Korean article: economist.co.kr
English brief by Korea Wind Intelligence, koreawindintel.com
Posco E&C has achieved a return to profitability in the first half of this year through disciplined management. However, it has secured no new orders in new businesses such as nuclear power, hydrogen, and offshore wind that could replace its housing operations. Analysts point out that the company must accelerate visible results in new businesses to reduce its dependence on housing.
According to the Financial Supervisory Service's electronic disclosure system, Posco E&C's operating profit for the first half of this year reached 97.4 billion won, turning from a loss in the same period last year to a profit. This was achieved by offsetting an operating loss of 94.7 billion won in the plant division with operating profit of 189.8 billion won in the construction division.
Rather than expanding its external footprint, the company focused on managing cost ratios and financial risks, lowering its annual new order target to 12.1 trillion won, a 20.5 percent decrease from last year's performance of 15.2376 trillion won. New orders in the first half also fell 33.6 percent to 6.7926 trillion won from 10.2257 trillion won in the same period last year.
